A research report from Soochow Securities Company Limited indicates that the domestic substitution of high-end fluorine-based materials is steadily advancing. The firm favors companies with foundational fluorochemical platform capabilities that have achieved customer qualifications and volume production in premium categories such as electronic-grade HF, HFE/PFPE, WF6/C4F6, and PFA/FFKM. Recommended stocks include Capchem Technology (300037.SZ) and Guangzhou Tinci Materials Technology (002709.SZ). The report also suggests watching Fujian Zhaoyuan New Material (603663.SH), Juhua Co., Ltd. (600160.SH), Zhongju Xincun (688549.SH), Jiangsu Yoke Technology (002409.SZ), Haohua Chemical Science & Technology (600378.SH), China Shipbuilding Special Gas (688146.SH), Anji Microelectronics Technology (688019.SH), and Do-Fluoride New Materials (002407.SZ).
Advanced nodes boost chemical usage intensity, with high-end photoresists and electronic specialty gases offering greater value elasticity and substitution potential
According to SEMI, the global semiconductor chemicals market is projected to exceed USD 20 billion by 2026, with electronic gases and wet electronic chemicals accounting for roughly 31% and 19% of the total, respectively, forming the primary baseline value. As capacity growth for nodes at or below 7nm outpaces the overall industry, the frequency of photolithography, etching, and CMP cycles rises, simultaneously increasing material usage per wafer and the share of premium products. By category, advanced nodes show a more pronounced marginal impact on photoresists, CMP, and electronic specialty gases. Regarding domestic substitution, the report estimates the overall localization rate for wet chemicals has reached 50%-60% in 2025, while the localization rates for KrF/ArF photoresists are estimated at less than 3%/1%, and for electronic specialty gases at approximately 25%. High-end photoresists and electronic specialty gases remain the segments with greater room for import replacement.
Fluorinated fluids and hydrofluoric acid: 3M's exit opens a substitution window for PFPE/HFE, while HF is driven by fab expansion and higher purity grades
PFPE is primarily used for temperature control in semiconductor equipment. 3M announced its exit from PFAS manufacturing at the end of 2022, and the report estimates 3M held about 80% of the global semiconductor temperature-control fluid share (by volume) at that time. Following its formal exit at the end of 2025, the former share is being redistributed, with Capchem Technology positioned to capture a major portion. The report projects PFPE demand to reach 12,000 tonnes with a market size of RMB 6.3 billion by 2030, and domestic manufacturers with mass-production capabilities and equipment certifications are expected to gain share. HFE is used mainly for semiconductor and precision electronics cleaning; after 3M's Novec exit, a replacement phase has commenced, with overseas suppliers still led by AGC and Chemours. The report forecasts global HFE demand of 7,600 tonnes and a market size of RMB 1.44 billion by 2030, shifting the competitive focus toward customer certification and stable supply. Electronic-grade HF is driven by growth in wafer starts, a higher share of advanced logic and memory, and the penetration of G5/G5+ grades. The report estimates demand will reach 270,000 tonnes with a market size of RMB 5.4 billion by 2030, while high-grade effective supply remains constrained by purification, clean packaging, and customer qualification requirements.
Fluorine-based electronic specialty gases: Demand shifts from mature cleaning gases to advanced etching/deposition gases, with WF6 and C4F6 facing tight supply-demand dynamics and notable price-volume elasticity
WF6, used in CVD/ALD tungsten deposition, is driven by advanced memory, logic metallization, and overseas supply disruptions. The report calculates global demand will rise from roughly 9,400 tonnes in 2025 to 19,300 tonnes by 2030, with the market size expanding from RMB 10.3 billion to RMB 22.1 billion. Supply remains tight in 2026, lifting the price center. By mid-2026, China Shipbuilding Special Gas will have 2,000 tonnes of 6N-grade capacity, with an additional 1,000 tonnes planned for 2027. C4F6 is used for high-aspect-ratio dielectric etching, supported by advanced logic, HBM, and 3D NAND. The report estimates global demand will grow from 2,000-3,000 tonnes in 2025 to 6,000 tonnes by 2030, with the market size rising from RMB 5.5 billion to RMB 14 billion. In 2026, effective demand for 5N-grade material is around 2,200 tonnes, creating a supply-demand gap. Domestic players such as Haohua Chemical Science & Technology and China Shipbuilding Special Gas have already established capacity or are supplying in small volumes.
Fluoropolymers: PFA and FFKM offer strong upside, while high-end effective supply remains constrained by purity, clean processing, and certification systems
PFA is a core structural material in wet processing, used in piping, valves, fittings, tanks, and filter housings for wet etch equipment. Global semiconductor-grade PFA demand is approximately 20,000 tonnes in 2025, and the report expects ultra-pure PFA demand could reach around 40,000 tonnes by 2030. As of the first half of 2026, Chemours and Daikin together account for over 40% of global nominal PFA capacity, while Juhua Co., Ltd. is gradually making inroads domestically. PTFE has the largest usage volume, with ample mid-to-low-end domestic supply, but ultra-pure grades still rely on overseas sources. FFKM is a critical sealing material for etching and deposition equipment; the report estimates 2026 global demand for semiconductor-grade raw rubber at approximately 200 tonnes. Overseas high-end seals are dominated by DuPont and Greene Tweed. Domestically, Juhua Co., Ltd. and Dongyue Group are accelerating substitution, but effective capacity in 2025 stands at only 8-10 tonnes. Further volume growth depends on achieving low extractables, batch-to-batch consistency, and certification for advanced process nodes.
Risk factors: Downstream demand may fall short of expectations; intensifying price competition; delays in customer qualification or capacity expansion; and stricter environmental and PFAS regulations.
Comments